A Study on the Application of Supply Chain Management Concept in Lulu Nyonya in Terms of Distribution Channel

Abstract

This project is about a study on the application of supply chain management concept in Lulu Nyonya in terms of distribution channel. Distribution channel is crucial to ensure Lulu Nyonya’s market and the image can be improved and enhance to customers. Background of the study acknowledges the correlation between supply chain management and its impact in the business especially for Lulu Nyonya Goodies Sdn Bhd. Lulu Nyonya Goodies Sdn Bhd is a SME company that produced Nyonya traditional delicacies especially ‘kueh angku’. The objectives of this study are to identify new market and methods of distribution for Lulu Nyonya Goodies Sdn Bhd and to propose the expansion of market for the product for Lulu Nyonya Goodies Sdn Bhd. The research is in Malaysia only. The interviews was conducted to know the external problem in their company and observes the method of distribution. The new markets of Lulu Nyonya have been identified which are out from the Klang Valley. Meanwhile, the new method of distribution also has been proposed which is added a lorry with air-conditioner. A good conduct in distribution channel can gain a more profit and create competitive advantages in the food industry in SME Business. Keywords: Distribution Channel, Supply Chain Management, method of distribution, SME business